Fannie Mae & Freddie Mac to Explore Crypto in Mortgages
FHFA Directs Fannie Mae and Freddie Mac to Consider Crypto Assets for Mortgages
The Federal Housing Finance Agency (FHFA) has issued a significant directive to Fannie Mae and Freddie Mac, instructing them to develop proposals for incorporating cryptocurrency assets into mortgage underwriting. This move could dramatically alter the landscape of homeownership for cryptocurrency holders.
Key Changes Proposed:
- Direct Inclusion of Crypto Assets: Instead of mandatory conversion to USD, crypto holdings could be directly assessed during the mortgage application process.
- Focus on US-Regulated Exchanges: Only crypto assets held on US-regulated, centralized exchanges operating within legal frameworks will be considered.
- Risk Mitigation Measures: Proposals must include strategies to account for cryptocurrency market volatility and implement appropriate risk-based adjustments to reserve requirements.
This initiative follows recent statements by FHFA Director William Pulte, who indicated an openness to exploring the integration of crypto assets into mortgage qualifications. The directive, signed June 25th, calls for proposals to be submitted "as soon as reasonably practical."
Previously, Fannie Mae and Freddie Mac, along with most lenders, required conversion of crypto assets into USD before consideration for mortgage eligibility. This new direction reflects a potential shift in the approach to assessing borrower assets.
Implications for the Crypto and Real Estate Markets:
If approved, the inclusion of crypto assets in mortgage underwriting could significantly broaden access to homeownership for cryptocurrency investors. It would represent a significant step toward greater integration between the traditional finance and cryptocurrency sectors.
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